Rate Update July 12, 2010

Mortgage rates are mostly unchanged this morning.

After a relatively anemic schedule for economic data last week the markets are embracing for a very busy calendar this week.  In addition to reports on the US Government deficit, retail sales, Fed meeting minutes, Producer Price Index, and the Consumer Price Index the markets will have to digest $69 billion of US treasury auctions.  Most of the action doesn’t kick off until tomorrow so we don’t expect a lot of movement today.

The technical trading patterns that caused rates to temporarily move higher late last week have been corrected so we’ll be watching the economic data this week to drive rates.

I think we can afford to float into the busy calendar.  I don’t expect the reports to be extremely optimistic so yields should remain low.

Current outlook: floating